Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Education Finance topic
No spam. Unsubscribe anytime.
Essex supervisors warn of possible multimillion-dollar exposure if school special-education reports aren't filed
Summary
Board members warned June 9 that missing time-and-effort reports for SPED grants (SPED 2026, $337,930) and unused COVID-era tutoring funds (about $166,932 remaining) could create large reimbursement obligations for the school division and potentially the county; VDOE rejected the SPED 2027 submission for missing information.
Board members at the June 9 Essex County meeting pressed county staff about incomplete documentation tied to special‑education grants and other school funding, warning that missing reports could lead to denied reimbursements and squarely burden the schools' budgets.
County grants staff (Nita) told the board that time‑and‑effort reports required for SPED 2026 (totaling $337,930 as reported in the packet) had not been received from the school division and therefore reimbursement requests should not be made until the documentation is provided. "If we don't receive those reports, then those reimbursement requests should not be made," the staff member said, noting the auditors had previously flagged missing documentation. Board members said the lack of follow‑through at the school division could result in funds needing to be returned or otherwise expensed against schools; one board member framed the potential loss as "potentially a $800,000 total loss or more" if multiple items remain unresolved.
On a related item, staff reported that a COVID‑era tutoring/attendance recovery fund had $166,932 remaining from an original total (the transcript cites $528,744 earlier) because the school division did not fully utilize the multi‑year allocation. Staff said the state provided the money up front in early 2024 and that remaining amounts date back to 2023 planning submissions.
Separately, VDOE flagged the SPED 2027 application for missing information and closed the submission; staff said the VDOE will move a corrected resubmission to the front of the review queue if the county resubmits promptly, but the initial deadline (May 8) had passed. Staff urged the school division to refile and suggested the board formally recommend the school board contact VDOE for assistance.
Tax liabilities: Staff also reported two IRS penalty notices related to school payroll filings for Q1 and Q2 of 2025 (together totaling more than $30,000) and said additional notices for Q3 were possible though payments had been caught up by Q4. Board members asked where money would come from to cover additional penalties and stressed the need for the school division to correct processes.
Board direction and next steps: The board discussed making a formal recommendation to the school board to contact the Virginia Department of Education for help and directed staff to continue seeking corrective documentation. The board tabled related school grant actions (school improvement grant and E‑Rate) at the meeting until signatures and required records are provided.
